The Banking Dragon’s Latest Scheme to get Its Claws on Fresh Gold!
from The Wealth Watchman
The Dragon Bleeds Gold
As the manufactured decline in precious metals drags on, the banking powers have bled a severe, epic tonnage of gold. We’re talking thousands of tonnes of gold in just a few short years. While they’ve managed to buy the dollar(and their system) some more precious time, the cost has been tremendously high.
This has forced the banksters to become increasingly….um….creative(shall we say), in coming up with ways to get their hands on new gold to shuttle into their dying, international, rehypothecated, gold ponzi scheme. There are few things they haven’t tried doing, but their latest gold grabs are both tragic and hair-raising for several reasons.
For instance, consider this genius’s grand strategy to reduce his country’s economic hardships:
Ugh! Yes, you read that right…President Maduro continues to ensure that Venezuela is fast-tracked to 3rd-world status, by shipping off his country’s gold reserves at the lowest dollar price in 5 years! Just look at this latest headline highlighting his gameplan to shuttle some fresh gold to the banksters, for their endless crime spree:
Why would he do such a thing? Well, he is an avowed Marxist, but he’s also a logical, self-serving political loser. Take a gander at this snippet below:
“International firms have calculated that in 2015 the Venezuelan government’s fiscal deficit could reach $25 billion. So far the government has chosen to cover part of this deficit by printing money without gold backing. This has caused an inflationary spiral that according to experts will put inflation in three digits.
Although the central bank did not formally announce the swap, information about it has filtered through international markets. This contributed to the rebound in oil prices in the world market.
So, the official story of why they’re swapping the gold is that Maduro is trying, desperately, to keep the entire ship of state from collapsing on his watch. He’s frantically trying not to sink things, especially since he’s Hugo’s “heir-apparent”. Ah, but if you thought those lines were troubling, read on, it gets much weirder!
“The Central Bank of Venezuela has pawned nearly $1 billion of its gold reserves, sources close to the central bank say. The swap operation, as it is called in the financial markets, was signed with the US bank Citibank, which was chosen from a group of five international organizations, which also aspired to structure this financial instrument.
Although details of the operation are unknown, experts have estimated that the US bank will charge a fee of between 6 and 7 percent for preparing the swap. The gold remains in the vaults of the Bank of England. But it would be taken as collateral in case the Central Bank of Venezuela does not pay on time the amount borrowed from Citibank.
It was thought that the swap’s value would be $1.5 billion, but in the end a lower figure was achieved. The funds will be used to pay for imports, an unofficial source said.”
Waaaait a minute…folks!
Did anyone else catch what was wrong with that statement?
Brothers, read these lines again, carefully:
“Although details of the operation are unknown, experts have estimated that the US bank will charge a fee of between 6 and 7 percent for preparing the swap. The gold remains in the vaults of the Bank of England. But it would be taken as collateral in case the Central Bank of Venezuela does not pay on time the amount borrowed from Citibank.”
Stop the presses!
There’s something very, very fishy going on.
Didn’t Hugo Chavez repatriate all of Venezuela’s gold bullion held at that very same bank just 4 short years ago?
Or, at least…..we were all told that he did.
We were all told that every last, blessed bar was in the hands of the Bank of Venezuela, and the Venezuelan government. We were all treated to endless pictures of Chavez posing with gold bars…
Or photos of the gold being carted through Caracas in armored trucks, as people chanted: “It is returned! It is returned!”
Right? Remember that?
Was it all returned? How do we know this? Was there ever a public, and independently verified, audit of all 160 tonnes?
“Watchman, are you saying they didn’t really get any of their gold back?”
No, I’m saying they probably didn’t get ALL their gold back.
“Well, how can you speculate they got any at all?”
Because, I don’t speculate that they got some gold back, I know they did. I can’t say more than that. I can only give you my word.
What I am saying though, is this:
Why was it reported that they got it all back, when it appears now, that they didn’t? How does this make any sense?
Here’s what I think happened…
Let’s Make a Deal
It seems probable that the Bank of England and Chavez cut a deal.
Knowing the predicament that his new request for repatriation put them in, it seems likely the bankers told him the realities of the situation. It also seems likely that they told him that retrieving all his gold(within the timeframe he wanted) was impossible, but that retrieving some of it was doable.
Chavez was likely asked to settle for a fraction of the tonnage owed, in exchange for secrecy. That way, he got some gold(while claiming he got it all), and got to be the hero, while they managed the paper unwind and public relations damage that his request made.
Thusly, what I’m saying is this:
If that is true, then it confirms one of my chief suspicions about Hugo’s attack on the banksters: the real damage that Hugo did to the banksters all along, was not in the tonnage paid, but rather in the nature of the request itself.
Think about it, the Dragon moves around many hundreds(and perhaps even thousands) of tonnes of gold per year in the City. Would even a lump sum of 160 tonnes be the killshot in an operation like that?
Not likely, especially not if done in secret, but a loud, public statement of “No confidence” in their system, would be! When the con is this large, the only thing that can stop it are multiple, public, government admissions that they no longer trust the system itself.
I can also assure you that dozens of other nations felt exactly as Hugo Chavez did, but none of them wanted to be personally responsible for bringing this colossal fraud down. None of them wanted to paint themselves as targets for the cabal. Whereas, Chavez, who was already dying of cancer, figured he had nothing left to lose, in firing this last, thunderous broadside at the bankers he hated so much.
The proof is in the pudding….for remember this:
Germany, shortly thereafter, fast-tracked their request for 4 times that amount of gold to be returned! Dozens more countries have now followed suit.
Everyone wanted their gold all along, but no one wanted to be first in line.
So, the newest bankster trend to keep the ponzi going, seems to be to act as vultures to procure gold from the most impoverished nations(particularly in the Latin world).
“Watchman, one country does not a trend make!”
Oh, how right you are….read on!
Not Just Venezuela
For this week also comes the news that El Salvador has gone and pawned some gold to the banksters, and while the tonnage amount is smaller, the percentage amount of their reserves sold is greater.
How much greater is it?
There is a great deal more about the sordid details of this awful transaction, from the excellent Ronan Manly(whom you’d do well to read).
Why would El Salvador do this? The reason they gave Reuters will knock your socks off!
“The country, which has been dollarized since 2001, sold 5.412 tons of gold for $206 million, which will go into the Bank’s reserve portfolios to protect it against market volatility.”
Oh, for Pete’s sake!
They’re selling their gold reserves, at the lowest price in 5 years…..to lock in a quarter billion US dollars, at its tippy-top highest valuation in decades!
Now, in all fairness, they’ve had to watch their gold reserves be unfairly pounded for almost half a decade now, so I can understand a little bit of the squeamishness of their mindset, but for goodness sake….EVERYONE who works in central banks knows what is happening. Everyone in central banking is an insider, they know who is doing the rigging and why.
It seems that things have become so dire for the fractional-reserve, gold system, that those with power have begun tapping those without it on the shoulder(at the most inopportune time) for their gold reserves, small as they may be.
This will, doubtless, go down as something akin to the “Brown’s Bottom” of El Salvadorian and Venezuelan lore. It’s sad to watch any country be sold out by those who were entrusted to keep vigil over their best interests, but what did their electorates really expect? Especially in Venezuela.
From San Salvador to Caracas, there are no places on this earth that the banksters won’t go, no tricks they won’t try, in order to relieve someone of their gold. El Salvador, already a poor country, has been sacrificed on the altar by those from within their borders, in order to acquire dollars at the worst possible time.
Venezuela, who until this time, has had over 360 tonnes of gold reserves on the books, has finally succumbed to economic pressures, and has tragically begun to pawn their true wealth off at multi-year lows.
Don’t think for a second, either, that Maduro(now that he’s crossed the Rubicon), will be satisfied at selling just a fraction of Venezuela’s reserves either. There could be much more liquidation to come.
Call Hugo Chavez what you will(much of it would probably be accurate, as his policies were a disaster for the Venezuelan people), but the one truly great thing that Chavez ever did for his people was to repatriate their gold from the Dragon’s stash in the City of London. It was great because it killed two birds with one stone: not only did this move encourage and empower his citizens, but it significantly hurt and upended the con in London. His daring move also jump-started the international fervor of numerous other countries, to reclaim the gold that was rightfully theirs as well. It was the silver lining, in an otherwise dark and tragic, political legacy.
This newest move by Maduro is both cowardly and despicable, as it somewhat erases the only real triumph Hugo ever had.
Chavez didn’t live long enough to see his country finally sink beneath the waves of the socialist and communist policies he’d spent his life enforcing. So, while this was all too predictable, it’s still tough to see the only positive thing Chavez ever did for Venezuela be undone in less than one presidential term.
Hugo is long gone….but until this point, the gold had remained.
The present was already ruined for Venezuelans, but their handy gold reserves meant that at least they had a shot for a decent future, later on.
Now, sadly, President Maduro, while draped in his faux patriotism, and endless Venezuelan flag outfits….is intent on killing off their future as well.
Make no mistake, the ghost of Chavez is HOWLING over this one…